QAs_-_Loss_Factor_Model.docx

RFP EXIM-14-Q-0052 Loss Factor Modelling, Amendment 0002 Questions and Responses

The following questions and responses pertaining to this requirement have been consolidated where appropriate.

Q-1 Does the Ex Im Bank have documentation of the model that will be provided to the vendor during the engagement?

A-1 Yes.

Q-2 Is the model used by the Ex Im Bank internally developed or vendor developed?

A-2 Internally developed.

Q-3 If the model was internally developed:

a. Will the vendor have access to the model code?

b. What programming language was the model developed in?

A-3 Yes, and partly developed in Excel partly in R.

Q-4 Will the vendor have access to the development data used to develop the model?

a. What is the size of the development data set (i.e. number of columns, number of rows)?

A-4 Yes, in the model developed at the end of FY 2013 the base dataset had 26 columns and 8,998 rows

Q-5 EXIM Bank has scheduled for Responses to be submitted on September 1, 2014 at 12:00 PM. Given the fact that September 1 is Labor Day and a Federal Holiday; will the Solicitation submission date be amended to a different / later date?

A-5 Yes. The due date for responses is extended to no later than 4:00 p.m., 9/2/14.

Q-6 Credit Loss Factor Modelling. Section J (p. 16) references the SOW as Attachment J.1 Statement of Work, but on the heading of the file it states Attachment J4. Please confirm that the SOW should be referred to as Attachment J.1.

A-6 Yes. The SOW should be identified as Attached J.1.

Q-7 Credit Loss Factor Modelling. Section L.2.B.e, 1&2 is the Restriction on Disclosure. It seems to differ from L.5 (c) which also states the Restriction on Disclosure. Please confirm which one the offeror should use.

A-7 L.2.B.e, being a FAR provision, takes precedent. The instructions at L.5 (c) may be ignored.

Q-8 Credit Loss Factor Modelling. Section L.8.2 describes the non-price volume as Factor 1 – Corporate Experience, Factor 2 – Management Approach, and Factor 3 – Past Performance. Does Ex-Im anticipate that the technical approach will be discussed as part of Factor 2? A-8 Yes.

Does Ex-Im require resumes to support the resourcing plan described in Factor 2? If so, will resumes count against the 25 page limit? A-8 Yes, and they do not count towards the 25 page limit.

Q-9 Credit Loss Factor Modelling. Section L.8.2 states “Offerors shall provide three (3) projects completed within three (3) years of the date of issuance of this RFP. Each project shall demonstrate experience on relevant projects (similar in size, scope and complexity to the RFP).” Due to the sensitive nature of the work performed, is it acceptable to protect our customer's confidentiality by not mentioning the client's name in the corporate experience (Factor 1) write-up section to allow full detail of the work and the relevance to the RFP?

A-9 Yes. However in such cases the Bank may request alternative references. The Bank is not requesting alternative references for the purpose of initial submissions.

Q-10 Credit Loss Factor Modelling. Section L.8.2 states “The Past Performance Questionnaire (PPQ) included in the solicitation is provided for the Offeror or its team members to submit to the client for each project the Offeror includes in its proposal for Factor 1, Corporate Experience. Ensure correct phone numbers and email addresses are provided for the client point of contact.” To provide a “blind” reference and protect our clients’ confidentiality is it acceptable for PPQ's to include “Reference available upon request” in the project description?

A-10 See A-9.

Q-11 General questions. How many portfolio segments use the loss reserve methodology?

A-11 All transactions are required by law to be reserved on an individual basis.

Q-12 Is the methodology consistent across the portfolio segments?

A-12 Transactions are evaluated based on the methodology developed in the credit loss model.

Q-13 Is the methodology documented and reviewed internally?

A-13 There is documentation that is reviewed by Ex-Im staff.

Q-14 How many years of historical data are available for assessing loss reserve model?

Does the scope of data testing include reconciliation of data used for loss reserves with the scope systems? Is the process to pull the data from the systems for loss reserves automated?

A-14 The dataset goes back to 1994, all aspects of the model including the data are to be evaluated. There is a built query out of the Bank’s internal dataset.

Q-15 How many models make up the credit loss factor estimation framework? Is it just one quantitative and one qualitative component?

A-15 There is a quantitative model for guarantees and for insurance policies and one qualitative component.

Q-16 What type of information do the quantitative and qualitative components utilize?

A-16 Historical Ex-Im data and data from sources like the Economist Intelligence Unit and Moody’s.

Q-17 What type of feedback have you received from the OMB and GAO authorities?

A-17 Both have reviewed the model and GAO has done an audit of risk management, which is publically available.

Q-18 Have you received user or third-party feedback regarding the state of the model(s)?

A-18 Yes.

Q-19 What is the size (exposure and number of entities) of the portfolio covered by the model(s)?

A-19 For the model completed at the end of FY 2013 the amount financed was about $120 billion.

Q-20 What data source was used to develop the model(s)?

A-20 Historical Ex-Im data and data from sources like the Economist Intelligence Unit and Moody’s.

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